Agri‐tourism/Green‐tourism
Glenn MuskeRural and Agribusiness Enterprise Development SpecialistRural and Agribusiness Enterprise Development Specialist
NDSU Extension Center for Community [email protected]
701‐328‐97189/28/109/28/10
ObjectiveObjective
• Explore agri‐tourism/green‐tourismExplore agri tourism/green tourism entrepreneurship as a means of increasing economic well‐beingeconomic well being
Of individuals and families– Of individuals and families
Of comm nities– Of communities
What does agri‐tourism/green‐tourism mean to you?
Agri‐tourism definedg
• Organizing a business focused on attracting f h hconsumers to a farm, ranch, or any other
agriculture, horticulture or agribusiness ienterprise
– Goal of agritourism: Provide an opportunity for hthe customer to: • enjoy & relax, be educated, purchase products and/or be involved in activities of the agribusiness operationbe involved in activities of the agribusiness operation
and for the owner to make a PROFIT from use of existing assets.existing assets.
Agri‐TourismMerging 2 industries
Green‐tourismGreen tourism
• Takes on multiple meanings – ecotourism bio‐Takes on multiple meanings ecotourism, biotourism, nature tourism, geo‐tourism, ecological tourism and building designecological tourism, and building design tourism or even environmental certification programsprograms
• Typically involves travel to destinations where flora fauna and cultural heritage are theflora, fauna, and cultural heritage are the primary attractions
City SlickersCity Slickers
http://www.youtube.com/watch?v=F‐L4L3mfU‐E&feature=related
What Do Rural Travelers Lik T DLike To Do
• Dining‐70% • Camping – 21%g
• Shopping‐ 58%
• Water Activities‐ 44%
p g
• Sporting Events – 18%
• Visit Winery/ Visit
• Visit Historical Sites‐41%
• Fish/Hunt/Boat‐ 32%
/
Farm/Orchard ‐ 15%
• Gambling/Gaming – 12%
• Visit Native American• Attend Festival/Fair‐29%
• Bike Riding/Hiking‐ 24%
• Religious Service 23%
• Visit Native American Community‐ 11%
• Religious Service‐ 23%
Source: TIAA, 2001 Rural Tourism Travel Poll
North Dakota Visitor Snapshot:North Dakota Visitor Snapshot:Reason for Travel
TouringTouring
Outdoor
Special Events
Visitor Spending Per Over‐Night Trip to ND
Transportation $338
Food $250
Accommodations $241
Retail $137
Recreation $ 82
Total $1,048
North Dakota VisitorsNorth Dakota Visitors
• Who are they?Who are they?– 64% are married
54% female– 54% female
– 41.4 years (average age)
52% i $50 000– 52% income over $50,000
North Dakota VisitorsNorth Dakota Visitors
• Where do they come from?Where do they come from?– 37% come from a city over 250,000
MN MT CA CO and WI– MN, MT, CA, CO and WI
– 33% Travel 100‐299 miles
21% t l 1 000 il– 21% travel over 1,000 miles
Trends in Tourism (USTA)Trends in Tourism (USTA)
• Deal not Destination
• Closer to home
• Urban dwellers want out
• Shop travel on line• Shop travel on‐line
• Want to learn
• Want bragging rights
• Family travely
Endless PossibilitiesOvernight Stays:
¤ Farm and ranch stays
Recreational Activities and Tours:¤ F fi hi d h ti¤ Rural b and b
¤ Youth camps¤ Cabin rental
¤ Fee fishing and hunting¤ Wineries and vineyards¤ Cattle drivesH ti
Special Holiday/Seasonal Events:
¤ Harvesting¤ Biking¤ Horseback riding
k d k l b¤ Haunted house¤ Hay ride¤ Corn maze
¤ Hiking and Rock climbing¤ Barn tours¤ Farm equipment
d t ti¤ Corn maze¤ Pumpkin patch¤ Harvest festivals¤ Music and art festivals
demonstrations¤ Wagon rides¤ Bird watching/Wildlife
watching¤ Music and art festivals watching
Endless PossibilitiesHospitality Services
¤ Meeting and conference facilities for business and l h
Retail Sales: Local Produce and Farm Products Sold at the Farm Gate
pleasure such as:» Country weddings and receptions» Company retreats» Family reunions» Church groups
¤ Jams and jellies¤ Bread¤ Homegrown beef/buffalo
» Church groups
Youth and/or Adult Education
meat¤ Vegetables¤ Pecans/peanuts and other
nuts¤ Organized tours: school,
senior, church, tour groups¤ Ag education programs: how
to grow , how to care
nuts¤ Wine/juices¤ Salsa¤ Flowersto grow _____, how to care
for _____, training _____¤ Nature education programs:
wildlife, trees, plants, etc.¤ D t ti h
¤ Pick your own fruits and vegetables
¤ Rent‐a‐tree, berry bush, garden or flowerbed¤ Demonstrations: cheese
making, wine making, etc.garden or flowerbed
http://wwwmulticentre org/Images%202009/http://www.multicentre.org/Images%202009/School%20Buttons/2009_city%20slickers.htm
ND Activities• You Pick – Patries Raspberriesp
• Working Cattle – Knife River Ranch
• Combining Wheat Neilson Farm• Combining Wheat – Neilson Farm
• Corn Maze – Amazing Maze
• Milk a Cow – Moo Acres
• Putting up the Harvest – Schill Farmg p
Agri‐tourismAgri tourism
• It’s not newIt s not new
• Often been an income supplementA d th t’ k– And that’s okay
• Shorter, closer to home vacations more common
• Getting back to nature growing– 66,000,000 wildlife watching participants in US
Wh ??Where to start??
Myth #1b bYou must be born an entrepreneur
• There is nothing totally genetic about being anThere is nothing totally genetic about being an entrepreneur– If you have a weak area solve it through:– If you have a weak area, solve it through:
• Classes
• MentorsMentors
• Reading
• Hire an employee
• Take on a partner
• Use a consultant
• Networks
Business Skills RequiredBusiness Skills Required
Entrepreneurial
Management
TechnicalTechnical
#1 Key#1 Key
#2 K G tt h#2 Key ‐ Gotta have
RResources•Land use land features land locationLand use, land features, land location•Farmstead features
/•Facilities – new/remodeled, ADA, restrooms, parking•Climate•WildlifeWildlife
Questions to Ask• Do I like working with the public?
• What does my property have to offer?– What does my community have to support me?– What does my community have to support me?
• Do I have some $$$$$ available?Do I have some $$$$$ available?
• How much time can I give to starting myHow much time can I give to starting my business?
• How will the business fit in with my family?
Myth #2Myth #2Ideas = Opportunitiespp
Build it and they will come
DOES NOT WORKDOES NOT WORK
when developing your businesswhen developing your business.
The Question – Is there a Market?The Question Is there a Market?
• Be realistic ‐ Get solid numbersBe realistic Get solid numbers– www.census.gov
• American Fact FinderAmerican Fact Finder
• E‐Stats ‐http://www.census.gov/econ/estats/index.html
– USDA Ag Census ‐ http://www.agcensus.usda.gov/
– State data centers
– US Bureau of Economic Analysis – www.bea.gov
– Google mapsg p
Marketing > Advertising + SalesMarketing > Advertising + Sales
Marketing is:Marketing is:• Customer definition and locationP d i d i k i• Product, price, production, packaging, etc
• Place• Promotion, PR, & advertising• Making the sale• Customer service!!!!!!!!!!• After the sale• Networks• BrandBrand
Marketing IssuesMarketing Issues
Trends vs FadsTrends vs Fads
New product/service vs Knock‐off
Si f h i iSize of the competition ‐ #s, resources
New market vs Existing market
Stage of the product/service
DifferentiationDifferentiation
Competitive advantages
E /S i l ki l !!E‐commerce/Social networking are tools!!
Getting the Word Outg• #1 – Word of mouth
Today’s social networks changing that whole area– Today s social networks changing that whole area
• Traditional meansAdvertising– Advertising
– PromotionPublic Relations – often overlooked– Public Relations – often overlooked
• Cooperative effortsOthers like you complementary businesses trade– Others like you, complementary businesses, trade associations
– In conjunction with local community effortsIn conjunction with local community efforts– Suppliers, distributors, etc.
Getting the Word Outg#1 – Word of mouth
Today’s social networkingnetworking changing that whole area
What’s next?
Do you need a website?Do you need a website?
Probably yes
Remember: Have an objectivejDesign and developmentUp‐front costsUp front costsMaintenanceYour audienceYour audience
Getting the Word OutGetting the Word Out
• Must know your target audienceMust know your target audience
• Must focus on that audience
k h k• Must track to see what works
• Must continually update
• Visual marketing
Myth #3Myth #3I want some free money
RealityRealityThere is (or rarely is) any free grant
funds for business start‐ups.
Don't waste your time, Mark Henricks writes. Outright grants are so few and so highly targeted that "[t]he chances of a typical would‐be
entrepreneur getting free government money to, say, start a p g g g y , y,landscaping business are nil," Henricks writes.
9/10/10 – CBS Business Network author
Funding RealityFunding Reality
• You (get your personal finances in order)You (get your personal finances in order)
• Bootstrapping
il d f i d• Family and friends
• Loans – Start with your local banker
– SBA guaranteed
• Special programs (ND – APUC)
• Angel investors or venture capitalists• Angel investors or venture capitalists
Aim for ProfitabilityAim for Profitability• If you can’t make money, don’t do it!!!!
• How determine? Do a BUSINESS PLAN!!!!
• Profitability issues– Costs – direct and indirect– Costs – direct and indirect
– Your time
Profit margin– Profit margin
– Taxes
Product Pricing Service Pricing Pricing for a Profit
Legalities and LiabilitiesLegalities and Liabilities
• Business nameBusiness name
• Federal Tax ID
S S l d i• State Sales and Use Tax Permits
• Licenses and other Permits
• Liability issues
• Protection of intellectual propertyProtection of intellectual property– Patents, trademarks and copyright
How to get started?
• Think about partners (think package)
• Build onto an
event
• Reach out for• Reach out for
marketing help
Other Tipsp• Chose something you love to doG t th h l f il i l d• Get the whole family involved
• Follow the demand – produce what the customers wantcustomers want
• Create a high quality product• Keep informed and educated about:• Keep informed and educated about:
– Product– IndustryIndustry– Market
• Start small and grow naturallyStart small and grow naturally
Communities Can Supporti i h hAgritourism Through:
• Cooperation/coordinationCooperation/coordination
• Inclusion
• Good infrastructureGood infrastructure
• Positive attitude towards visitors
• Clean environment• Clean environment
• Good retail mix
• Local tourism organization• Local tourism organization
• Coordinated activities
G d h it lit• Good hospitality
Tourism and Your Community
Tourists
$
Gas, Food, Lodging, Amusement, Recreation
Outside GoodsLocal Goods
Wages, Salaries, Profits, Taxes
$$
Source: Tourism USA, “Appraising Tourism Potential,” Volume I, United States Department of Commerce, U.S. Travel Service, p. 8, 1978.
ResourcesResources
Iowa State Agricultural Marketing Resource Center
“How to”How to
• Oklahoma Agri‐tourism HandbookOklahoma Agri tourism Handbook
• Is Agri‐tourism for You?
i i d i i• Entertainment Farming and Agri‐Tourism
• Nature Tourism Business Plan Development(Free course – need to register)
• Texas Nature Tourism
• Promoting Tourism in Rural America
Questions??
Glenn MuskeRural and Agribusiness Enterprise Development SpecialistRural and Agribusiness Enterprise Development Specialist
NDSU Extension Center for Community [email protected]
701‐328‐97189/28/10
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